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HomeMy WebLinkAbout90-140 - ADMIN Resolution - City Council - 1990/10/0190-140 RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council (the "Council") of the City of St. Louis Park, Minnesota (the "City"), as follows: SECTION 1 Recitals and Findings 1.01 This Council has received a proposal that the City issue its revenue bonds to finance a portion or all of the cost of a proposed project under Minnesota Statutes, Sections 469.152 to 469.165, as amended (the "Act"), on behalf of Park Nicollet Medical Center, a Minnesota nonprofit business trust (the "Corporation"), consisting of the issuance of up to $32,000,000 revenue bonds on behalf of the Corporation to finance a Project for health care services. 1.02 The Project consists of, but is not limited to; 1) work and code compliance remodeling and the acquisition and installation of CT/MRI equipment and other items of equipment all to be located at 4959 Excelsior Boulevard, St. Louis Park, Minnesota, 2) the acquisition and equipping of a 38,000 square foot medical center, pharmacy and medical retailing facility at 5320 Hyland Greens Drive, Bloomington, Minnesota, 3) the acquisition of land and construction and equipping of a 20,000 square foot medical center, pharmacy and medical retailing facility proposed to be located at the southeast corner of Interstate 35E and Cliff Road in Eagan, Minnesota, and 4) the acquisition of land and construction and equipping of a 45,000 square foot medical center, pharmacy and medical retailing facility proposed to be located on Out Lot A, Carlson Center, Minnetonka, Minnesota on the northwest corner of the intersection of Carlson Parkway and Highway 394 (collectively, the "Project"). 1.03 The Act provides that revenue bonds may be issued for a project located in the state and that the City may enter into intergovernmental agreements whereby one municipality issues its revenue bonds in behalf of one or more other municipalities. In 1.04 At a public hearing, duly noticed and held on October 1, 1990, in accordance with the Act, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project and interested persons were given the opportunity to submit written comments to the City Clerk before the time of the hearing. Based on the public hearing, such written comments (if any) and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota requires the provision of necessary health care facilities, so that adequate health care services are available to residents of the State of Minnesota at reasonable cost, and the State of Minnesota has encouraged local government units to act to provide such facilities. (b) The Project would further the general purposes contemplated and described in Section 469.152 of the Act. (c) This Council has been advised by representatives of the Corporation that the undertaking of the proposed Project and the issuance of the revenue bonds to finance the cost thereof will promote the public purposes and legislative objectives of the Act by providing substantial inducement for the continuation of the health care operations of the Corporation in the City and surrounding areas. (d) This Council has` been advised by representatives of the Corporation that (i) the Project will create approximately 171 construction jobs paying an average wage level of $ 40.00 per hour, including benefits, for an estimated 52.800 hours; and (jai) it is anticipated that the Project will assist in preventing the occurrence of conditions requiring redevelopment, or aid in the redevelopment of existing areas of blighted, marginal land, and the avoidance of substantial and persistent unemployment. (e) This Council has been advised by representatives of the Corporation that (i) conventional commercial financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Corporation's medical facilities would be significantly reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more feasible, and (ii) the Project would not be undertaken but for the availability of Industrial Development Bond financing. -2- (f) This Council has also been advised by Dain Bosworth Incorporated that, on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds and refunding revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project. (g) The City is authorized by the Act to issue its revenue bonds to finance the Project. SECTION 2 Determination to Proceed with the Project and its Financing 2.01 On the basis of the information given the City to date, it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act to finance the Project in the maximum aggregate principal amount of $32,000,000. 2.02 It is hereby determined to proceed with the Project and its financing and this Council hereby declares its present intent to have the City issue its revenue bonds under the Act to finance the Project. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or its City Council to issue such revenue bonds. All details of such revenue bond issues and the provisions for payment thereof shall be subject to final approval of the Project by the Minnesota Department of Trade and Economic Development, shall be subject to entering into an intergovernmental agreement with municipalities in which portions of the Project are located, and may be subject to such further conditions as the City may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the revenues specifically pledged to the payment thereof, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional, statutory or charter limitation. 2.03 The Application in substantially the form attached hereto as Exhibit A to the Minnesota Department of Trade and Economic Development, with all attachments and exhibits, is hereby approved, and the Mayor, City Manager and City Clerk are authorized to execute said documents on behalf of the City. - -3- 2.04 In accordance with Section 469.154, Subdivision 3 of the Act, the Mayor, City Manager and City Clerk are hereby authorized and directed to cause the Application to be submitted to the Minnesota Department of Trade and Economic Development for approval of the Project. The Mayor, City Manager, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Minnesota Department of Trade and Economic Development with any preliminary information needed for this purpose. The City Attorney and/or Special Counsel for the City is authorized to initiate and assist in the preparation of such documents as may be appropriate with respect to the issuance of the revenue bonds, if approved by the Department. 2.05 This resolution and the intentions set forth herein are subject to the Corporation entering into the Agreement as to Indemnity and Payment of Expenses, between the City and the Authority substantially in the form attached as Exhibit B to Resolution 90-128 with such changes as approved by the City Manager 2.06 Popham, Haik, Schnobrich & Kaufman, Ltd. as Bond Counsel is hereby authorized to proceed with the preparation of documents as directed by the Corporation. SECTION 3 General 3.01 If the bonds are issued and sold, the City will enter into a loan agreement or similar agreement satisfying the requirements of the Act (the "Revenue Agreement") with the Corporation. The loan payments or other amounts payable by the Corporation to the City under the Revenue Agreement shall be sufficient to pay the principal of, and interest and redemption premium, if any, on the bonds as and when the same shall become due and payable. 3.02 The Mayor, City Manager and City Clerk are directed, if the bonds are issued and sold, thereafter to comply with the provisions of Section 469.154, Subdivisions 5 and 7 of the Act. Adopted this 1st day of October, 1990. ATTEST: Reviewed for administration: Approved as to form and execution: Gd00001 au. picaaittufrb - City Manager City Attorney -5-